Miji International Holdings Limited provided group earnings guidance for the six months ending June 30, 2020. The board of directors of the company inform the shareholders of the company and the potential investors that, based on the unaudited consolidated management accounts of the Group for the five months ended 31 May 2020 and information currently available to the company, the Group expects to record a net loss after tax of approximately RMB 11.0 million for the six months ending 30 June 2020, as opposed to a net profit after tax of approximately RMB 9.7 million for the corresponding period in 2019. The expected net loss is primarily attributed to the following reasons: the Group's revenue is expected to decline by 8% to 15% as a result of the lockdown and social distancing measures imposed by many countries to contain the spread of novel coronavirus; the Group's gross profit margin is expected to decline from 56.1% for the six months ended 30 June 2019 to approximately 50% for the six months ending 30 June 2020 because the Group offered more gifts and incentives to customers in order to stimulate its sale performance; reduced customer demand due to deteriorated business and economic environment; delays in production schedule and product delivery caused by the disruption of the Group's production facilities in the People's Republic of China and delay in the supply of raw materials from suppliers; the Group's selling and distribution expenses are expected to increase by 20%, primarily attributable to increased consignment fees in relation to sales through television platform and increased marketing and advertising expenses in relation to product exhibitions and other marketing events; and certain operating costs of the Group are fixed costs, regardless of the disruption of the Group's business operations caused by the novel coronavirus.